The dollar today is seen inclining ahead of the U.S. data which is projected to show that existing home sales in millions is projected to climb and this therefore supported the dollar in markets, which increased demand on dollar as investors feel that the housing sector continues to improve. The Dollar Index, which gauges strength of the dollar against six major currencies, is currently inclining trading at 86.12 while recording a high of 86.19 and a low of 85.50.
The euro tumbled especially after over the weekend, Bank of Spain assigned a temporary administrator to operate the CajaSur, a saving bank that was affected from the financial crisis. First the bank was taken care of by a Roman Catholic Church, now it will be operated by the government's bank restructuring fund.
As a result of this announcement, we see that the euro reversed its gains it was trying to post last week versus the dollar, currently the pair is trading at 1.2402 above the support of 1.2345 and below the resistance of 1.2470 while recording a high of 1.2563 and a low of 1.2397. Over the one-hour basis, the technical charts are showing us that the pair is being traded in an oversold area.
Most of the European markets are closed today while banks are shut down for the Whit Monday Holiday, and that is why economies lack major economic data today.
The pound like the euro is depreciating versus the dollar as currently investors are avoiding higher yielding assets, and turning to lower yielding currencies which weighs on the strength on the pound. The debt crisis in the UK is weighing on the outlook of the pound, since it haunts the outlook of the nation. The GBP/USD is currently trading at 1.4420 above the support of 1.4395 and below the resistance of 1.4515 while recording a high of 1.4527 and a low of 1.4405. The four-hour technical charts are supporting the fact that the downtrend wave is occurring in the markets.
The dollar yen pair is consolidating between the support of 89.65 and the resistance of 91.00 while recording a high of 90.45 and a low of 89.73. Over the one-hour basis the volume indicator is supporting the fact that there is low volume in the markets.